Forex Options
Forex options, also called currency options, are exchange-traded derivatives granting the right, but not the obligation, to buy or sell a currency pair at a set price and date. They come as call options, allowing the holder to purchase a forex pair, or put options, enabling the sale of a pair. While exercising the option is optional, each contract has a predetermined price and expiration. In India, forex options are limited to the USD-INR pair, offering traders a tool to hedge or speculate on currency movements without mandatory execution.
Related Terms
Gamma
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Commodity Spread Straddle
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Holding Company
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Bracket Order
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Capital Expenditure
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